The S corporation form is often misunderstood. With a solid foundation in S corporation taxation, practitioners can explain to clients how they can use the tax status to their advantage. Participants will be prepared to explain the benefits and drawbacks of electing S corporation status and why business taxpayers may favor pass-through entity treatment over the C corporation. This course provides the knowledge needed to speak effectively to potential business clients and existing shareholders about the S corporation business model that may work for them.
Learning Objectives
When you complete this course, you will be able to:
- Recognize the advantages and disadvantages of S corporation status.
- Recognize when the S election becomes effective.
- Identify permitted fiscal years, elections, and user fees.
- Identify shareholder consent rules and causes of invalid elections.
- Recognize events causing involuntary termination.
- Recognize when an S corporation is subject to tax at the entity level.
- Recognize how accumulated earnings and profits, accumulated adjustments accounts, other adjustments accounts, and shareholder bases are affected by distributions.
- Recall the applicability of various S corporation filing requirements.
Major Topics
- Advantages and disadvantages of S corporations
- Electing S corporation status
- Termination of S corporation status
- S corporation tax on built-in gains
- S corporation pass-through to shareholders, basis and losses
- S corporation distributions
- Taxable year of S corporations
- S corporation passive activity rules, fringe benefits and other considerations
